Dáil Éireann debate -
Wednesday, 22 Oct 2003

Vol. 573 No. 1

Written Answers. - Social Welfare Benefits.

Pat Breen

Question:

111 Mr. P. Breen asked the Minister for Social and Family Affairs if she will review the fuel allowance which is totally inadequate to meet the needs of those who rely on it; and if she will increase the duration of the fuel season particularly for the elderly. [24328/03]

Brendan Howlin

Question:

115 Mr. Howlin asked the Minister for Social and Family Affairs if she will address the issue of fuel poverty among lone parents; and if she will make a statement on the matter. [24223/03]

Minister for Social and Family Affairs (Mary Coughlan)

I propose to take Questions Nos. 111 and 115 together.

The aim of the national fuel scheme is to assist householders who are in receipt of long-term social welfare or health board payments and who are unable to provide fully for their own heating needs.

A fuel allowance payment of €9 per week is paid to eligible households, while an additional €3.90 per week is paid in smokeless zones, bringing the total amount in those areas to €12.90 per week. These payments are made for the duration of the fuel season which lasts for 29 weeks. The fuel allowances represent a contribution towards a person's normal heating and lighting expenses. In addition, many households also qualify for electricity and gas allowances.

There is also a facility available through the supplementary welfare allowance scheme to assist people in certain circumstances who have special heating needs. The fuel allowance scheme has been improved in recent budgets. The means test has been eased and the duration of payment increased from 26 weeks to 29 weeks. The significant increases in recent years in primary social welfare payment rates, such as the old age pension, have also improved the income position for people dependent on the social welfare system. Primary payment rates are payable for the full 52 weeks of the year and increases in these rates benefit a wider range of recipients.

With regard to lone parents and fuel poverty, fuel allowances are payable to lone parents on the same basis as applies to other categories of recipient. However, a lone parent may have earnings up to €146.50 per week disregarded in full for the purposes of the one parent family scheme while earnings between €146.50 and €293.00 per week are assessed at half-rate. So long as a lone parent is in receipt of one parent family payment even at a reduced rate he or she can qualify for the full fuel allowance subject to household composition rules. The questions of increases in the rates of fuel allowance as well as changes in the duration of the heating season would have to be considered in a budgetary context.

Liz McManus

Question:

112 Ms McManus asked the Minister for Social and Family Affairs the reason almost ?30 million was paid out in 2002 in social welfare payments by mistake; the steps she is taking to ensure that this does not recur; and if she will make a statement on the matter. [24220/03]

Minister for Social and Family Affairs (Mary Coughlan)

Overpayments can arise in the social welfare system for different reasons, including deliberate fraud, failure by claimants to notify the Department of changes in their circumstances or error on the part of the claimant or the Department. Some 38,628 recipients of social welfare payments were assessed with overpayments totalling almost €29 million in 2002. This represents about 0.3% of total scheme expenditure in 2002. Cases of apparent fraud accounted for 41% of the value of overpayments or a total of almost €12 million. Customer or third party error, where the customer failed to inform the Department of a change in circumstances, accounted for 34% or almost €10 million. A further 20% was accounted for by overpayments which came to light after the death of a claimant where previously non-declared assets arose on the distribution of their estate. Overpayments attributed to departmental error constituted 7% of all cases and accounted for 5% of the total value of all overpayments in 2002 or €1.5 million.

In relation to ensuring that overpayments do not occur, my Department has detailed procedures and checks in place to ensure that payments are properly made and claims are properly authorised, while also endeavouring to ensure good service to claimants. The ongoing use of information technology in the provision of the Department's services as well as staff training and development are key elements of the Departments programme in that regard. The Department has in place a control programme, the aim of which includes the prevention of overpayments and their detection when they do occur. This involves checks at the point of claiming, reviews of means, verification that the conditions of entitlement continue to be met on an ongoing basis, medical reviews, inspections of employers, arrangements for debt recovery and prosecutions. The Department also has an internal audit unit, which advises on risk management and internal control procedures, and of course the Department is subject to audit by the Comptroller and Auditor General. Procedures and checks are subject to regular review to ensure that they are adequate and to ensure that overpayments are minimised.